Pakistan Credit Rating Agency Limited maintains its rating of The Pakistan General Insurance Company Limited

Islamabad, June 09, 2015 (PPI-OT): The Pakistan Credit Rating Agency (PACRA) has maintained the Insurer Financial Strength (IFS) rating of The Pakistan General Insurance Company Limited (PGI) at “A-” (Single A Minus) . The rating denotes a strong capacity to meet policyholder and contract obligations.

The rating reflects strength of PGI’s risk absorption capacity emanating from a sizeable and growing equity base. A major portion of this equity is deployed in liquid investments, supplemented through the sale of investment property. A sizeable portion of PGI’s investments is in the form of low earning deposits with banks, which, though facilitating premium volumes, keeps investment income low.

The company has strengthened its underwriting procedures through embedded controls in the system. Meanwhile, there is focus on bank-led business, wherein enlistment with a large bank has brought growth in the ensuing year. The company anticipates moderate growth in business; herein takaful window operations are also on cards.

Segment concentration is expected to remain high. The rating is dependent on management’s ability to improve its market position; reflected in business volumes while ensuring underwriting profitability. Meanwhile, any material decline in the business performance and/or significant deterioration in liquidity position, would have negative implication for the rating.

For more information, contact:
Hammad Rashid
Analyst
The Pakistan Credit Rating Agency Limited (PACRA)
Awami Complex, FB1, Usman Block New Garden Town,
Lahore – Pakistan
Tel: +9242 586 9504 -6
Fax: +9242 583 0425
Email: hammad.rashid@pacra.com
Web: www.pacra.com